Banks To Remain Open This Weekend

The government seeking to assuage any panic in public said that banks and post offices will be open over the weekend.

Having swept away 86 percent of total currency by banning ₹500/1000 notes , the government on Wednesday sought to assuage any panic in public, saying banks and post offices will start giving out replacement currencies from Thursday even as it expanded the scope of exempt public utilities.

It also ordered banks to remain open for a full day this Saturday and Sunday to deal with the rush of people wanting to deposit the defunct currency bills.

Officials said that honest taxpayers, as well as housewives and farmers with genuine savings, have nothing to worry if they deposit old currencies in their bank accounts and take out replacement ones. However, tax authorities would keep a close watch on deposits of higher denominations made from illicit sources, black money or crime money.

Housewives, farmers and those whose annual income is within the tax exemption limit may not be hounded by tax authorities for depositing up to ₹2.5 lakh of the now-defunct higher denomination currency notes in bank accounts.

The government today expanded the list of services where the withdrawn notes will be accepted until November 11 midnight. They include payments for metro rail tickets, highway and road toll, purchase of medicines on doctor prescription from government and private pharmacies, LPG gas cylinders, railway catering and ASI monuments entry tickets.

A 72-hour relaxation for use of such notes was given on Tuesday for government hospitals, railway ticketing, public transport, airline ticketing counters at airports; milk booths, crematoria/burial grounds, and petrol pumps.

Banks and ATMs were shut on Wednesday to remove old ₹500/1000 notes and stock them with a lower denomination and new hard-to-fake ₹500 and ₹ 2,000 currency notes. Banks will open on Thursday as RBI has sent truckloads of new notes throughout the country, while some ATMs will begin dispensing cash.

Withdrawal limitations of ₹2,000 a day from ATM per card and ₹10,000 through bank account on a day and ₹20,000 in a week will continue for some time, he said. "As and when more currency comes into the banking system, there will be a rethink on those limitations."

"It should be clear that it is no immunity scheme. This (deposit) does not provide any relief from taxation. The law of land will apply (on the source of the fund)," he said. "If the money is legitimate which had been previously withdrawn from a bank or earned legally and saved and had been disclosed, there is nothing to worry about".

Major banks extend working hours, waive ATM charges

Fearing a jump in footfalls to deposit or withdraw cash following the demonetisation of ₹500 and 1,000 banknotes, lenders announced a slew of measures, including the extension of banking hours, doing away with ATM charges and expanding credit limits.